The good news for income investors in this low interest rate environment, is that there are countless dividend shares to choose from on the Australian share market.
But with so many options, it can be hard to decide which ones to buy.
To narrow things down, I have picked out two ASX dividend shares that are rated as buys by analysts. They are as follows:
DEXUS Property Group (ASX: DXS)
The first ASX dividend share to look at is Dexus. It is an Australian real estate company focused on owning, managing, and developing office, industrial, and retail properties. The company's areas of operation include a direct property portfolio, which directly invests in Australian office and industrial properties, and third-party fund management. The latter side of the business manages office, industrial and retail properties located across Australia.
The team at Macquarie are very positive on the company's outlook. So much so, last week the broker upgraded the company's shares to an outperform rating with an $11.67 price target. Macquarie is also forecasting dividends per share of 52.9 cents in FY 2022 and 57.3 cents in FY 2023. Based on the current Dexus share price of $10.54, this will mean yields of 5% and 5.4%, respectively.
South32 Ltd (ASX: S32)
Another ASX dividend share to look at is South32. It is a diversified mining company with exposure to a range of commodities. One of those is aluminium, which the team at Goldman Sachs believe is in the early stages of a multi-year bull market. It is largely for this reason that the broker has a buy rating and $3.60 price target on the mining giant's shares.
The broker is also expecting the favourable commodity prices to underpin big dividend payments in the coming years. Goldman has pencilled in dividends per share of 22.6 US cents in FY 2022 and 27.7 US cents in FY 2023. Based on current exchange rates and the latest South32 share price of $3.44, this will mean fully franked yields of 9% and 10.9%, respectively.
